Finding Text
Federal Agency: Department of Education
Federal Program Name: Education Stabilization Fund
Assistance Listing Number: 84.425
Federal Award Identification Number and Year: Various
Pass-Through Agency: New Haven Public Schools and Norwalk Public Schools Pass-Through Numbers: Various
Award Period: Various
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Material Noncompliance (Modified Opinion)
Criteria or Specific Requirement: Uniform Guidance (2 CFR Part 200) requires that payroll costs charged to a grants must have sufficient documentation to support the employee position and rate of pay and must also be supported by sufficient time and effort documentation. Time and effort can be accomplished through utilization of time sheets or personal activity reports (PAR), but must be completed at least monthly and must be signed by both the employee and the supervisor.
Condition: A sample of 21 employees was selected for testing. During that testing, we identified, 2 employees that did not have sufficient documentation to support their position and rate of pay. In addition, we identified 7 employees that did not have sufficient time and effort documentation to support the payroll cost charged to the grant.
Questioned Costs: Unknown
Context: Payroll costs comprised approximately 46% of total costs charged to this grant.
Cause: Due to turnover within the organization and changes within the organizational structure, underlying support as required by Uniform Guidance was not properly maintained.
Effect: The effect is that payroll costs charged to the grant could potentially be incorrectly stated and/or misallocated as of year-end.
Repeat Finding: Finding does not represent a repeat finding.
Recommendation: We recommend that internal policies and procedures be reviewed and updated to ensure underlying supporting documentation is fully retained going forward.
Views of Responsible Officials: Management concurs with the finding. Refer to the separate corrective action plan.